The good news: your kids have finally moved out and you and your spouse now live alone in a four-bedroom Craftsman. If it no longer meets your current needs, you have two choices:
- Remodel your house to fit your current lifestyle and needs
- Sell your house and purchase the perfect home for your current needs
Based on the record amount of money spent on remodeling and renovations recently, it seems like many homeowners are deciding on option number one. But is that the best long-term solution?
If you currently live in a three or four bedroom home, you may have bought it at a time when your children were the major consideration in determining your family’s housing needs. Along with a large home, you more than likely also considered school district, the size of the property and perhaps even factors as proximity of parks and whether there were other families with kids of a similar age living in the area.
Remodeling your home to meet your current needs might mean combining two bedrooms to make one beautiful master suite or changing another bedroom into the massive walk-in closet you always wanted. However, if you live in a neighborhood that historically attracts young families, you may be dramatically undermining the value of your house by cutting down the number of bedrooms and making it less desirable to the typical family moving onto your block.
And, according to a recent study, you will recoup only 64.4% of most remodeling projects’ costs if you sell in the future.
Your home is probably at its highest value as it stands right now. Instead of remodeling your house if it doesn’t meet your current needs, it may make better financial sense to sell your current home and purchase a home that was built specifically to meet your current lifestyle and desires.
In many cases, this well-designed home will give you exactly what you want in less square footage than your current home, which could translate into lower taxes and less maintenance as well.
If you are living in a house that no longer fits your needs, at least consider checking out other homes in your area that would meet your lifestyle needs before taking on the cost and hassle of remodeling your current house.